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http://dx.doi.org/10.13106/jafeb.2021.vol8.no7.0333

Determinants for the Adoption of Electronic Commerce by Small and Medium-Sized Enterprises: An Empirical Study in Indonesia  

ASWAR, Khoirul (Accounting Department, Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta)
ERMAWATI, Ermawati (Accounting Department, Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta)
WIRMAN, Wirman (Accounting Department, Faculty of Economics and Business, Universitas Singabangsa Karawang)
WIGUNA, Meilda (Accounting Department, Faculty of Economics and Business, Universitas Riau)
HARIYANI, Eka (Accounting Department, Faculty of Economics and Business, Universitas Riau)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.7, 2021 , pp. 333-339 More about this Journal
Abstract
The study seeks to identify the determinants of the adoption of e-commerce by small and medium-sized enterprises (SMEs) in developing countries, in our case, in Indonesia. The aim of this study is to examine the factors influencing e-commerce adoption. This study uses the method of quantitative data collection based on a questionnaire survey of SMEs in Indonesia. The research relies on Regional Project stipulations regarding Business Development in Indonesia, to capture businesses with a range of 5 to 100 employees that are classified as SMEs. This study randomly chose 100 SMEs in Indonesia from the IndoNetwork database. Partial least square (PLS) structural model data processing was used for path coefficients analysis. Structural equation modeling is applied in this study to analyze the determinant factors on the e-commerce adoption. The study findings reveal that four factors, namely, perceived benefits, compatibility, technology readiness, and government support, significantly influence the adoption of e-commerce, whereas customer/supplier pressure does not have influence. So, this study concludes that perceived benefits, compatibility, technology readiness, and government support had a significant and positive relationship with e-commerce adoption. Meanwhile, customer/supplier pressure had no effect on the e-commerce adoption of by Indonesia SMEs.
Keywords
E-Commerce; Technological Context; Organizational Context; Environmental Context; Indonesia;
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